U.S. Group Sponsors Establishment of South American Palestine Economic Corporation

August 24, 1951

NEW YORK (Aug. 23)

The establishment of the South American Palestine Economic Corporation was revealed today in a report issued by the Palestine Economic Corporation here. The report says that a representative of South Americans living in Israel is now traveling through various South American countries to secure capital for the new corporation.

The Palestine Economic Corporation in New York has agreed to act as sponsor, to make a nominal financial investment, and to be the administrative agent of the South American corporation in the United States, the report emphasized. Several projects for the new company are being considered.

The report also revealed that the Israel Government is considering a proposal by the company that the P.E.C. underwrite $1,000,000 towards its own refinancing. Part of the proposal includes a $2,500,000 loan from the Export-Import Bank. “On the basis of present world market prices, the company should earn in foreign exchange for Israel millions of dollars annually,” the report declares.

The P.E.C. also reported that its wholly-owned subsidiary, the Bayside land Development Corporation in Israel, is considering a plan to construct a group of factory buildings in various cities of Israel for leasing to small manufacturers. “The actual work on these factories has already begun,” the report said. The Palestine Economic Corporation is also acting as agent in Israel for a number of American firms, including General Electric, Aluminum Company of America and others.